Dow acquires Wolff Walsrode from Bayer

The Dow Chemical Company has reached an agreement with the Bayer Group to purchase Bayer’s Wolff Walsrode cellulose production business.
The transaction is expected to close in the first half of 2007, subject to regulatory approval.
Financial terms have not been disclosed.
“The acquisition [of Wolff Walsrode] will create a US$1 billion performance business for Dow,” Romeo Kreinberg, Dow’s executive V.P. for performance plastics and chemicals, said. “We will accelerate growth, ensure long-term supply and offer a broad portfolio of differentiated solutions by expanding our collective expertise and capabilities.”
According to Dow, the new business will combine Wolff Walsrode’s production technology in hydroxyethly methylcellulose (HEMC) and carboxymethyl cellulose (CMC) with Dow’s hydroxypropyl methyl cellulose (HPMC) product brands.
With annual sales of US$46 billion, Dow employs 42,000 people worldwide. The company has Canadian headquarters in Etobicoke, Ont.
Wolff Walsrode, which employs approximately 1,500 people, reported 2005 revenues of more than US$400 million.